Data Analyst Vs. Business Analyst: What Is The Important Difference?
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- Jaro eduction
- 13, January 2025
- 11:00 am
If you want to launch a career in data analytics or business analytics with a Master of Analytics, you are probably considering possible roles in either of these areas. Right? Although both of them commonly deal with data, the level of responsibility and functions involved can be significantly different across different organisations.
You can think of a business analyst as a business strategist. They use data and information to make all those critical decisions that direct a company’s future. A data analyst is, however, more like a detective. They gather and analyse data to find trends and insights that shed light on those strategic decisions.
But this is just the tip of the iceberg! In case you think of going in this direction, understanding the difference between data analysts and business analysts is very important, as the knowledge of their distinct responsibilities will guide you in making an informed choice on which path you would like to take.
Ready to take a deeper dive into data analyst vs business analyst? Let’s go ahead and explore this role in further detail!
 *geeksforgeeks.org
What is a Business Analyst?
In many companies, business analysis is a vital career. They help organisations respond to their current and future challenges by utilising technology as part of the solution. Rather than steering the whole direction like a CEO, business analysts zoom into specific projects or challenges with the spirit of a change agent.
So, what kind of change do they drive? Well, it can touch every aspect of business. Whether it’s about improving performance management, developing a new strategy for launching a product, improving customer experience, or process automation, they are loaded with tackling a plethora of issues.Â
Furthermore, their core part of work involves the identification, design, and implementation of new IT systems that increase efficiency and contribute to strategic objectives. This means working with IT teams to ensure that the solutions offered align with the needs of the business.
In order to understand the difference between data analysts and business analysts, they must understand how their organisation works and how their projects contribute to the broader strategy. They interact with various stakeholders to analyse needs, discuss issues, and brainstorm solutions. Once a series of potential solutions is developed, the analysis formed is presented to decision-makers, such as executives or board members.
Their day-to-day activities might include:
-
- Collecting, validating, and documenting business requirements
- Performing commercial analysis of budgets and sales performance
- Modelling business processes for follow-through
- Identifying issues, risks and gains coming from both existing and new solutions
- Writing functional specifications describing solutions, implementations, and test protocols
What is a Data Analyst?
While business analysts engage with different functions and challenges in an organisation, data analysts plunge deep into the data itself. Such professionals are specially trained to use powerful tools and techniques to utilise the full potential of the data and develop gained knowledge into useful insights for the aligning of business strategy.
The undertaking of a data analyst begins with a question or problem. Once the focus is set clear, it makes it simpler to see the data sets that are essential and which ones are to be treated as noise. Identifying key data means gathering it together, converting it to a consistent format, and discarding anything trivial or misleading.
The exciting part is interpreting the data to uncover patterns, trends, and relationships. These insights help inform a business on the triggers of cause and effects and their predictions for solving the initial questions asked and making informed decisions for the days ahead.
*slingshotapp.io
Data analysis can help businesses with:Â Â
-
- Improving specific aspects of their products and services Â
- Making faster and more informed business decisions backed by factsÂ
- Gaining a deeper understanding of customer requirementsÂ
- Analysing competitors’ weaknesses and strengths and uncovering opportunities for improvements Â
- Identifying ways to reduce costs and increase profits Â
- Visualising data and making sense of it Â
- Discovering performance issues that require action Â
Data Analyst vs Business Analyst: How They Differ
The table below represents how a data analyst and a business analyst are different from each other.
| Data Analysts | Business Analyst | |
|---|---|---|
| Primary Goal | It involves analysing data to find patterns and trends to make informed business decisions. | Review business processes and help with data analysis to tackle business problems and increase efficiency. |
| Objectives | Predict trends, provide recommendations, and extra | Drive business strategy, improve processes, optimise operations |
| Technical Skills | Software testing skills
Knowledge of programming language
| |
| Technology or Tools Requirements | SQL Python MS Excel Qlik Apache Spark Jupyter Tableau Looker | Jira Pencil HubSpot Google Docs Evernote Looker Studio Pencil CRM |
| Career Focus | Statistical Analysis and Data Exploration | Business process analysis |
| Business Skills | Critical Thinking Problem-solving skills Analytical skills Problem-solving skills | Excellent Communication Skills Domain understanding Requirements Elicitations |
Salary Comparison: Data Analysts vs Business Analysts
Now, let’s understand the most commonly asked questions when it comes to data analyst vs business analyst. What is the salary of a data analyst or business analyst? Let’s take a closer look at the average salaries for each role in India, based on data from Glassdoor:
Salaries for business Analysts based on experience:
| Years of Experience | Job Titles |
|---|---|
| 1-3 years | ₹50T /mo |
| 4-6 Years | ₹12L /yr |
| 6-10 Years | ₹18L /yr |
Data Analyst Salaries
| Years of Experience | Job Titles |
|---|---|
| Fresher | ₹1.8 L/ye - 12.8 L/yr |
| 1 Year | ₹4.00 L/yr - 13 L/yr |
| 2 to 6 years | ₹18L /yr |
Factors Influencing Salary Differences
There are several reasons which influence the salary of a data analyst vs a business analyst.Â
- Experience: Years and seniority play a significant role in what you get paid.
- Industry and Location: Some industries and cities pay more to cater for demand and cost of living.
- Skills: Domain knowledge (healthcare, for example, for business analysts) or specialised technical skills (machine learning skills for data analysts) tend to be on the high-paying side.
- Company Size and Reputation: Bigger, more established companies usually offer better salary packages.
*hiration.com
How to Choose Between a Career as a Data Analyst and Business Analyst
So, which career path is the right one for you: data analytics vs business analytics? To determine that, you will need to consider three factors:
1. Consider Your Background
Data analysts and business analysts typically have diverse professional and educational backgrounds. For instance, business analysts—also referred to as systems analysts—typically hold an undergraduate degree with a business focus. They are knowledgeable about a variety of computer languages, and they mostly use data to improve the efficiency of corporate operations.
On the other hand, data analysts deal with massive data sets to spot patterns, develop charts, and produce visual presentations that the company may use to make choices. These individuals typically have postgraduate degrees and more thorough experience in math, physics, programming, databases, modelling, and predictive analytics.Â
2. Consider Your Interests
Do you have an obsession with statistics and figures, or are you a businessperson who prefers to solve problems?
According to a study, business analysts prefer working in the corporate sector and focus more on problem-solving techniques. For instance, they might be assigned to conduct research, plan, and supervise the introduction of a new process. These individuals frequently have a natural ability to communicate; both written and verbal communication skills are crucial because they have to translate technical messages into understandable words for stakeholders.
So, simply put, people who are motivated by numbers and are skilled in programming and statistics are known as data analysts.
3. Enroll in an Online Course
The best way to learn about business and decision-making is to enrol in IIM Ahmedabad’s ePost Graduate Diploma in Advanced Business Analytics (ePGD-ABA). This course is mainly designed to help professionals transform their data into actionable insights and make informed decisions. This programme is for 16 months and is a blend of online and on-campus sessions. With this course, you are going to learn not only advanced tools and techniques but also domain-specific applications in marketing, finance, operations, and strategy.Â
How Can Jaro Education be a Reliable Partner in your Academic Journey?
Without a doubt, certification courses are key to building a career in data and business analytics. However, other factors also affect your academic excellence and career, such as the right counselling and support. This is where Jaro Education excels. Jaro is one of the renowned online higher education and upskilling companies, providing every learner with dedicated academic support and career counselling. The company is associated with multiple prestigious universities and colleges that offer up-to-date and standard certification and degree programmes. If you’re enrolling in the programme provided by IIM Ahmedabad in partnership with Jaro, you are eligible to benefit from the following:
- Unparalleled support
- Great learning experience
- Building professional network
- Chance to attend workshops organised by industry experts
In the End
Indeed, in this data-driven sector, both business analysts and data analysts are crucial, having diverse areas of expertise, responsibilities, and areas of concentration. While business analysts bridge the gap between data and business by converting discoveries into workable plans, data analysts dig deep into the data to identify insights through technical knowledge.
However, which of these two rewarding occupations is ideal for you will depend on your own goals, interests, and strengths. Data analysis could be your vocation if you have a strong interest in statistics, like deciphering intricate patterns, and appreciate taking on technological problems. On the other hand, business analysis can be the perfect career choice for you if you’re a strategic thinker who likes to solve business challenges and share findings with stakeholders.
You can also start your journey to understanding the roles of data analyst and business analyst with IIM Ahmedabad’s ePost Graduate Diploma in Advanced Business Analytics (ePGD-ABA).
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